Chapter 1 Accounting Flashcards
Accountant
a professional person who develops and maintains the accounting systems; interprets the data and prepares reports; supervises the work of accounting employees and participates in management positions.
Accounting
the process of gathering and preparing financial information about a business or other organization in a form that provides accurate and useful records and enables decisions to be made.
Accounting Clerk
a junior employee who ensures that transactions are properly recorded and that supporting documents are present and correct. Carries out routine calculations and banking transactions.
Accounting Cycle
the total set of accounting procedures that must be carried out during each fiscal period.
Auditing
the examination of books, records, and procedures of a business to be able to express an opinion about its financial statement, ultimately making sure that the business is following ethical business principles.
Bookkeeping
the routine tasks of an accounting clerk. This includes recording accounting entries and balancing the ledger.
Corporation
a special form of business that is owned by shareholders. Same as a limited company.
Fiscal Period
the period of time over which earnings are measured.
Limited Company
a firm owned by shareholders who have limited liability.
Manufacturing Business
a business that buys raw materials and transforms them into new products and sells to earn a profit.
Merchandising Business
a business that buys goods and then sells those goods for a profit.
Non-profit Organization
an organization that carries out social or charity work and is not run for a profit.
Partnership
a legal contract that sets forth the terms and conditions of the partnership.
Producing Business
a business which produced materials directly from natural resources; a farm, for instance, or a fishery.
Professional Accountants
is a person who has met the requirements of the Chartered Professional Accountants (CPA) organization of Canada.
Public Accountant
an accountant who offers services professionally to the general public.
Service Business
a business that sells a service, not a product.
Sole Proprietorship
a business enterprise, the equity of which belongs to one person.
